Impact of the Changes in the Pension Formula on Workers' Decision to Retire

Yulia Dormidontova, V. Lyashok and Vladimir Nazarov
Additional contact information
V. Lyashok: Institute for Social Analysis and Forecasting, Russian Presidential Academy of National Economy and Public Administration (ISAF RANEPA), Moscow, Russia

Journal of the New Economic Association, 2015, vol. 25, issue 1, 57-75

Abstract: The purpose of this paper is to estimate with the help of econometric methods, how sensitive the labour supply of elderly is to the changes in the pension system. We first analyze how a hypothetical increase of pension eligibility age would influence the economic activity of such individuals. The results of the simulation model show that a 5-year increase of pension eligibility age (up to 65 years for men and 60 years for women) would lead to an increase of economic activity of those whom this reform will concern by 11-14 pct. We next analyze how elderly would react to the changes in the pension legislation, which came into force in the beginning of 2015, in particular, the possibility to defer retirement in order to receive a higher pension later. Our estimates show that this mechanism gives incentives to postpone retirement only for women, but not for men.

Keywords: pension system; retirees; retirement age; elderly employment; pension formula (search for similar items in EconPapers)
JEL-codes: J14 J26 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.econorus.org/repec/journl/2015-25-57-75r.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nea:journl:y:2015:i:25:p:57-75

Access Statistics for this article

Journal of the New Economic Association is currently edited by Victor Polterovich and Aleksandr Rubinshtein

More articles in Journal of the New Economic Association from New Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Alexey Tcharykov ().